Govt. relaxes limitations on outward remittance

The government has relaxed certain limitations on outward remittances for capital transactions and removed restrictions on current transfers of emigrants with the current and expected developments in the domestic foreign exchange market.

The decision has been taken by the Finance Ministry with the concurrence of the Monetary Board of the Central Bank.

Accordingly, the first-time migration allowance has been increased to US $ 50, 000 from US $ 30, 000, and limitations on repatriation of current income or accumulated current income of emigrants have been completely removed.

In addition, companies listed on the Colombo Stock Exchange can now invest up to US $ 200, 000 in ordinary shares of a company outside Sri Lanka for the purpose of expanding their core business overseas.

Also, local companies can invest up to US $ 100, 000 to set up overseas offices.

Further, suspension on outward remittances by companies incorporated in Sri Lanka, being subsidiaries or branch offices of overseas companies to make investments in employee share ownership plan/employee share options, has also been removed.

The government first introduced restrictions on outward remittances in April, 2020 to minimize the pressure on the exchange rate and preserve foreign reserves.

Link to the full statement: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20230724_new_order_issued_relaxing_certain_limitations_suspensions_imposed_on_outward_remittances_of_foreign_exchange_e.pdf